Download Notice Concerning Issuance of Investment Corporation Bonds

For Translation Purposes Only
April 14, 2017
For Immediate Release
Issuer of real estate investment trust securities:
Invesco Office J-REIT, Inc.
6-10-1, Roppongi, Minato-ku Tokyo
Yugo Minemura, Executive Director
(TSE code: 3298)
Asset Management Company:
Invesco Global Real Estate Asia Pacific, Inc.
Yasuyuki Tsuji, Representative in Japan
Inquiries: Hiroto Kai, Head of Portfolio Management Department
TEL. +81-3-6447-3395
Notice Concerning Issuance of Investment Corporation Bonds
Invesco Office J-REIT, Inc. (hereinafter referred to as the “Investment Corporation”) announces that it
has decided to issue investment corporation bonds based on the blanket resolution approved at the
board of directors’ meeting held on February 27, 2017.
1. Details of the investment corporation bonds
(1) Name
: Invesco Office J-REIT Inc. 1st Unsecured Investment Corporation Bonds
(Special pari passu conditions among specified investment corporation
bonds) (hereinafter referred to as the “First Series Bonds”)
Invesco Office J-REIT Inc. 2nd Unsecured Investment Corporation
Bonds (Special pari passu conditions among specified investment
corporation bonds) (hereinafter referred to as the “Second Series
Bonds”)
(2)
Total amount to be
issued
:
(3)
Form
of
certificate
:
(4)
(5)
(6)
Issue price
Redemption price
Interest rate
:
:
:
(7)
(8)
(9)
(10)
(11)
Denomination price
Offering method
Subscription date
Payment date
Collateral/Guarantee
:
:
:
:
:
bond
(12) Redemption method
and date
:
Hereinafter, the First Series Bonds and the Second Series Bonds are
collectively referred to as the “Investment Corporation Bonds”. There will
be no particular mention as to which bonds, if the item is common to the
First Series Bonds and the Second Series Bonds.
3,400 million yen
Breakdown : The First Series Bonds : 1,800 million yen
The Second Series Bonds : 1,600 million yen
Subject to the provisions of the Act on Book-Entry of Company Bonds,
Shares, etc., investment corporation bond certificates for the Investment
Corporation Bonds will not be issued.
100yen per 100yen of each bond
100yen per 100yen of each bond
The First Series Bonds : 0.320%
The Second Series Bonds : 0.520%
100 million yen
Public offering
April 14, 2017 (Friday)
April 20, 2017 (Thursday)
Neither collateral nor guarantee is provided for the Investment
Corporation Bonds, and no asset has been particularly secured for the
Investment Corporation Bonds.
Total amount of each Investment Corporation Bond will be redeemed on
the date below.
The First Series Bonds : April 20, 2022 (Wednesday)
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(13) Interest payment date
:
(14) Financial covenant
(15) Credit rating
(16) Financial
agent,
issuing agent, and
payment agent
(17) Underwriter
:
:
:
:
The Second Series Bonds : April 19, 2024 (Friday)
The Investment Corporation Bonds may be repurchased and cancelled
at any time on and after the following day of the payment date, unless
otherwise provided by law or the service regulations and other rules
determined by the depository.
The first interest payment will be due on October 31, 2017, and
subsequent interest payments will be due on April 30 and October 31 of
every year and on the maturity date. (If an interest payment day is not a
business day, payment will be made on the preceding business day.)
Negative pledge among unsecured bonds
A+ Japan Credit Rating Agency, Ltd.
Sumitomo Mitsui Banking Corporation
SMBC Nikko Securities Inc., Nomura Securities Co., Ltd., and Mizuho
Securities Co., Ltd.
2. Reason for issuance
The Investment Corporation has decided to make a repayment of its outstanding borrowings by fund
procured through issuance of the Investment Corporation Bonds in order to diversify and extend the
debt maturity date and diversify the financing methods. At the same time, the Investment Corporation
aims to recover the shortage of operating capital due to asset acquisition.
3. Amount of funds to be raised, use of proceeds and scheduled timing of expenditure
(1) Amount of funds to be raised (estimated net proceeds)
3,371 million yen
(2) Specific use of proceeds and scheduled timing of expenditure
The Investment Corporation will use the proceeds to repay the existing short-term loan
(hereinafter referred to as the “Existing Loan”) of 2,000 million yen which comes due on April
28, 2017 and to recover a part of the shortage of operating capital due to paying acquisition
price and related expenses (1,987 million yen) for acquiring Aqua Dojima East on March 31,
2017.
4. Status of balance of borrowings etc. after the issuance of the Investment Corporation Bonds
(Unit: million yen)
Before the Issuance
After the Issuance
of the Investment
of the Investment
Change
Corporation Bonds
Corporation Bonds
and the Repayment
and the Repayment
of Existing Loan
of Existing Loan
Short-term borrowings (Note)
2,000
―
-2,000
Long-term borrowings (Note)
Total borrowings
Investment corporation bonds
Total interest-bearing debt
85,600
85,600
―
87,600
85,600
-2,000
―
3,400
3,400
87,600
89,000
1,400
(Note) If the period from borrowing date to maturity date is one year or less, it is categorized as “Short-term borrowings.” On the
other hand, if the period from borrowing date to maturity date is more than one year, it is categorized as “Long-term
borrowings”.
5. Additional Items Required to Ensure Appropriate Understanding and Judgments by Investors
Regarding Relevant Information
Concerning the risks pertaining to the issuance and repayment of the Investment Corporation Bonds,
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there is no change from the description in “Part 1. Fund Information, I. Status of the Fund, 3. Investment
risks” stated in the Securities Report submitted on January 27, 2017.
*
*
This material will be distributed to the Kabuto Club, the kisha club of the Ministry of Land,
Infrastructure, Transport and Tourism, and the kisha club specializing in construction of the Ministry
of Land, Infrastructure, Transport and Tourism.
Website address for the Investment Corporation: http://www.invesco-reit.co.jp/en/
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